The complete guide to buy property in Malta

Saying ‘yes’ to owning a second home comes naturally to many people. And when it comes to buying quality real estate in Malta, it can be an extremely rewarding experience for property investors ― not to mention a life-changing decision. This guide walks you through the whole process of buying Malta real estate for sale.

Some of the topics we’ll cover include:

Why buy property in Malta

Buying property in Malta is safe and secure. In fact, it may be one of the safest real estate transactions that exist in Europe.

Top reasons to buy property in Malta

Top-performing real estate market with consistent capital growth Top-performing real estate market with consistent capital growth
Get the Maltese passport after buying property in a year Get the Maltese passport after buying property in a year
Vast selection of properties Vast selection of properties
Warm Mediterranean climate Warm Mediterranean climate
Safe and secure country Safe and secure country
Excellent living standards Excellent living standards
Open door to the EU Open door to the EU
Low taxation rates Low taxation rates

Where to purchase property in Malta?

Malta consists of three inhabited islands (Malta, Gozo, and Comino). Where to buy Republic of Malta real estate depends largely on your lifestyle preferences, and whether you prefer city life or more peace and quiet. 

In general, you have two options for buying Malta real estate for sale: buy a property by itself or under the Malta Citizenship by Investment Program. To qualify for the Citizenship by Investment program, you must make a Malta real estate investment worth at least €700,000, or enter into a rental agreement at a minimum value of €16,000 per annum.

Best cities to buy property in Malta

Some of the best cities to buy property in Malta include Sliema, St. Julian’s, and Gzira. These cities are renowned for the range of restaurants, nightlife, shopping places on offer, as well as stunning seaside lookout points. 

Valletta and Mdina are also good cities to buy homes in, as they boast beautiful architecture, a rich culture, and offer a more fast-paced lifestyle. 

If you’re into laidback country style life, then either Zebbug, Rabat, or Gozo are good options. Here you can escape from the city noise and relax in a traditional village atmosphere.

Property types in Malta

Malta’s diverse property market means there is no shortage of property types in Malta. Rest assured, you’ll be able to find homes of quality real estate in malta.

From apartments, maisonettes, houses of character, to farmhouses, terraced houses, villas, and bungalows, today much of Republic of Malta real estate is being snapped up by foreigners and decorated in retro style. Malta’s famous for its blend of traditional Maltese architecture with a modern outlook. 

How Global Citizen Solutions can help

We are a boutique consultancy firm with years of experience delivering bespoke residence and citizenship-by-investment solutions for international families. With offices worldwide and an experienced, hands-on team, we help clients from around the world acquire Golden Visas or homes while diversifying their portfolio with robust investments.

If you’d like to enquire about our Malta real estate investment services, we encourage you to contact one of our property specialists. 

Malta property market history and overview

Malta’s property market has been experiencing unprecedented growth these last few years. For the past five years, the industry has enjoyed consecutive growth, both in the number of real estate transactions and in overall volume. 

This growth is largely attributed to the number of foreigners moving to Malta or buying properties. The rental market has equally been successful, where owning rental property is seen as a lucrative business and an excellent return on investment. 

What are property prices like in Malta?

Purchasing property in Malta remains in-demand within the Maltese Islands, with home ownerships accounting for 80%. In the last decade, the demand for apartments ― both for residential purposes and as rental investments ― has skyrocketed. 

Maltese property has been on the upswing for the past three years. The Central Bank has attributed these to Malta’s Individual Investor Programme and to the stamp duty exemption for first-time buyers.

At present, the asking prices for properties usually are around:

  • €204,707 for a 1-bedroom studio  
  • €400,000+ for 3-bedroom apartments  
  • €723,000 for 3-bedroom duplexes 
  • €1.5 million for a 4-bedroom villa

Step-by-step guide on how to buy property in Malta

Requirements for buying property

Non-residents can easily buy property in Malta, provided they obtain an AIP permit. A fee of €233 is charged per permit, (subject to change at the government’s discretion), with the permit usually being issued within 35 days.

An AIP permit is not needed to buy properties in Special Designated Areas and, in the case of EU citizens who:

  • Have been resident in Malta continuously for five years
  • Want to buy property to live in
  • Want to purchase property for investment purposes

Furthermore, foreign nationals and EU citizens can only buy one property in Malta, usually for owner-occupancy purposes, but can purchase more properties in the ‘Special Designated Areas’.

Malta property for rent

Malta property for rent is possible under certain conditions. Property owned by foreigners can be rented out only if the property is valued over €233,000, has a swimming pool, and is registered with the Hotel and Catering Establishments Board. Foreign-owned properties can only be rented out for short-term lease agreements. 

Buy property in Special Designated Areas

There are various Malta luxury real estate for sale. These luxury developments come complete with porters and a reception area, pools, and parking facilities that have been built in prime locations over the Maltese islands. These Malta luxury real estate for sale fall under the ‘Special Designated Areas’ and as such, you aren’t subjected to any restrictions, nor do you need an AIP permit. A key advantage of buying a property in this area is that it gives you the same rights as a Maltese national, no matter if you’re an EU citizen or not.

The current special designated areas are:

Tax on buying property in Malta

Normally, buyers must pay some kind of tax on buying property in Malta. Purchasers usually pay a 5% stamp duty during the property transfer. 1% is paid on the promise of sale agreement, while the remaining 4% is paid during the final deed of the transfer. Note that for Maltese and EU citizens who were resident in Malta for a continuous 5 years, they are entitled to a reduction in the rate of stamp duty from 5% to 3.5% on the first €150,000 of the property acquisition fee.

 

Buy property via Malta Citizenship by Investment

If you’re a foreign national and thinking of relocating to Malta, then there are a number of visa programs available to you.  Malta Citizenship by Naturalization for Exceptional Services (MEIN), also known as the Malta Citizenship by Investment Program, rewards investors with passports in exchange for making a qualifying investment in the nation. 

The investor must an exceptional direct investment of a minimum of €600,000 or €750,000, depending on the residence period selected 12 or 36 months (extra €50,000 is required for each dependent). They must also invest €700,000 in residential real estate, or enter into a rental agreement at a minimum value of €16,000 per annum which must be maintained for five years. In addition, a compulsory donation of €10,000 to a registered philanthropic, cultural, sport, scientific, animal welfare, or artistic non-governmental approved organization or society must be made.

Malta passport benefits

There are many advantages to having a Malta passport, including financial and personal stability, global mobility, immediate access to the EU, and the right to work, live and study anywhere in the continent.

The tax system is particularly advantageous to foreigners with residential status, as such individuals are not taxed on foreign-sourced capital gains and foreign-sourced income.

Malta real estate transaction costs

  • 5% stamp duty (currently 2% for Gozo until end of 2019)
  • 1% to 3% notarial fee
  • €600 searches and registration fees 
  • €233 AIP permit fee (where applicable)

Process of buying property

  1. The first thing you should do is to hire a notary and possibly a lawyer who practices property law. Then you can start looking for a property in Malta that meets your unique needs.
  2. The next step is to negotiate the contract details with the seller until you obtain a written contract called a Konvenju or a ‘promise of sale’.
  3. Pay the deposit fee and the first fifth of the stamp duty, which is like a tax on buying property in Malta, (1% of the agreed purchase price.)
  4. Your notary should conduct all searches to ensure the property has a legal title.
  5. Apply for a bank loan if needed
  6. Once all conditions are met, a final agreement is drafted and agreed upon by both parties
  7. The price is paid and the buyer can get the keys.
  8. The seller pays taxes she owes from selling property.

Is it worth purchasing property in Malta?

Malta has one of the strongest real estate markets in the world, ranking particularly highly in Europe alone. There are many advantages to buying property in Malta: fantastic weather, great government incentives for businesses, and the chance to get EU citizenship. As a small Mediterranean country, Malta has something to cater for everyone – from partygoers to islanders, and entrepreneurs, Malta is the ideal place if you’re looking to invest in Europe.

Purchasing property for sale in Malta is a very good investment. Not only will you be able to provide for a viable and long-term investment for you and your family, but if you choose to buy real estate property under the Citizenship by Investment scheme, you and your family will be granted Malta passports. 

Property specialists for Malta

Why not speak to one of our real estate specialists about purchasing property in Malta? 

We are a boutique investment firm with years of experience delivering bespoke residence and citizenship-by-investment solutions for international families. At Global Citizen Solutions, we can simplify access to property investments, provide local insights, help with legal assistance, tax planning, and more—all while ensuring efficient, personalized, and confidential service. 

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Frequently asked questions about Malta real estate

How to buy real estate for sale in Malta and Gozo?

To buy real estate for sale in Malta and Gozo, there are plenty of reputable real estate companies or property investment firms like Global Citizen Solutions that can assist you with your property sourcing and acquisition. Currently, there are a number of property developments in Gozo that offer reasonable investments, with an incredible selection of property types that may fit whatever budget you have.

What are my options to buy real estate in Malta?

To buy real estate in Malta, you can do it by yourself, or through Malta’s Citizenship by Investment Program. You’ll need to make a real estate investment of at least €700,000, or enter into a rental agreement at a minimum value of €16,000 per annum.

Is it worth it to buy real estate for sale on Malta island?

It’s definitely worth it to buy real estate for sale on Malta island. This is because there are a lot of property types available on the market, and the Maltese real estate market is one of the best in Europe. This means it’s highly likely you’ll land an excellent property investment deal. An increasing number of foreigners are also buying real estate to get EU citizenship, highlighting the importance of having a second passport that’s part of the European Union.

What are the laws regarding rental property Malta?

A new reform of private residential rental leases for properties has kicked in January 2020. Rental leases for properties let out to tenants working or studying in Malta. The new law enables landlords to register their rental properties with the Housing Authority. In general, if you’re thinking about buying to let in Malta, it’s possible and can be profitable. Through property investment, one earns double the profit- income in the form of rent and capital growth.

What is the tax on buying property in Malta?

The tax on buying property in Malta varies depending on whether you’ve been living in Malta for five years prior to purchasing Malta property and/or are an EU citizen. Usually, the stamp duty for the property acquisition is 5% with exceptions for EU citizens living in Malta.

How much is a property for sale in Malta with a pool?

Property for sale in Malta with a pool usually costs from € 500,000 onwards.

Where are prestige properties in Malta located?

There are many prestige properties in Malta to buy. These are known as ‘Special Designated’, and the added advantage is that you don’t need to get a AIP permit if you buy properties in the Specially Designated Areas. The reason these properties are prestigious is because they’re modern buildings, with state-of-the-art facilities.

Do I need a Malta property specialist to buy property?

While you can buy property yourself in Malta, it is highly recommended to consider hiring a Malta property specialist. They can walk you through a detailed analysis of the property market, what areas to consider buying property in, as well as help with acquisition and legal and tax affairs. At Global Citizen Solutions, we’re experts in property investment and relocation solutions, and have helped hundreds of families acquire homes in Malta seamlessly. Get in touch with us to discuss how we can best assist you.